Exchange-traded funds that track the biotech sector fell on Wednesday, underperforming the broad market as Celgene tumbled. The iShares Nasdaq Biotechnology ETF fell 0.7% while the SPDR S&P Biotech ETF was down 0.6%. Among the biggest drags on the sector was Celgene Corp , which tumbled 8.3% in heavy trading after it said the Food and Drug Administration wouldn’t let it file for approval of its ozanimod drug for relapsing multiple sclerosis. Among other big drags on the sector, Depomed Inc. was down 11.7% while Acadia Pharmaceuticals Inc. shed 17%. Another drugmaker, Valeant Pharmaceuticals International Inc. , sank 11% after it reported fourth-quarter revenue that missed expectations and also gave a 2018 outlook that was below forecasts.
Thus far this year, the SPDR ETF is up 7.8% while the iShares fund is up 2.3%. The S&P 500 is up about 2.7% in 2018. On Wednesday, the Dow Jones Industrial Average fell 0.1% while the S&P was flat and the Nasdaq Composite Index rose 0.1%.

Celgene downgraded to hold from buy at SunTrust RH

Celgene Corp. shares dropped in the extended session Tuesday after the biotech drug maker said the Food and Drug Administration would not accept a drug marketing application for a multiple sclerosis treatment. Celgene shares dropped 7% after hours. Celgene said the FDA sent it a "Refusal to File" letter for the company's new drug application for the drug ozanimod. "Upon its preliminary review, the FDA determined that the nonclinical and clinical pharmacology sections in the NDA were insufficient to permit a complete review," the company said in a statement. "Celgene intends to seek immediate guidance, including requesting a Type A meeting with the FDA, to ascertain what additional information will be required to resubmit the NDA."

Celgene Corp. said Monday Chairman Bob Hugin will retire, effective Feb. 5, after about two years in the role and 19 years with the company. The biopharmaceutical company said Chief Executive Mark Alles will take on the additional role of chairman in Hugin's place. Hugin was appointed chairman on March 1, 2016. He had joined the company in June 1999 as chief financial officer. The stock fell 1% in morning trade. It has lost 8.3% over the past 12 months, while the iShares Nasdaq Biotechnology ETF has rallied 30.2% and the S&P 500 has climbed 24.5%.

Celgene Corp.

Celgene Corp. is an integrated global biopharmaceutical company, which engages in the discovery, development and commercialization of therapies for the treatment of cancer and inflammatory diseases. Its targeting areas include intracellular signaling pathways, protein homeostasis and epigenetics in cancer and immune cells, immunomodulation in cancer and autoimmune diseases and therapeutic application of cell therapies. The company's products include Revlimid, Vidaza, Thalomid, Pomalyst/Imnovid, Abraxane, and Istodax. Celgene was founded by David Stirling and Sol Barer in 1986 and is headquartered in Summit, NJ.
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